5. Hong Kong's own order of preference among the other three alternatives is set out in the minute. But we do not suggest that you should at this stage sound the Secretariat on the other possibilities. If they seem willing to accept our proposal, the next step will be to tackle the EEC on the lines indicated in para 3 above; if the Secretariat raise serious difficulties, then we shall have to think again.

6.

Since time presses, if this question is to be settled before entry, we should be glad if you would tackle the Secretariat as soon as possible. But in case the UK delegation in Brussels, to whom this letter is being copied, have any comments, you should delay approaching the Secretariat for a few days in order to give Brussels time to comment if they wish to do so.

7. This letter has been seen and agreed by Martin Lam and Robin Allott, and by the interested Divisions of CRE and the FCO.

(Miss) J E Elliott

CRE1

ENC

Co

W Nicoll Esq, UK Delegation, EEC

M A Goodfellow Esq, FCO (Hong Kong and Indian Ocean Dept) A R Clark Esq, FCO (TPD)

JV Hagestadt Esa, CRE3

Miss C R Welch, CRE2

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